Offset mortgage deals can be a smart idea.

An offset mortgage allows you to offset any savings against your mortgage. Such mortgage deals are beneficial as they can help you to reduce the interest that needs to be paid on your loan. With interest rates paid on saving presently remaining extremely low many of you may find savings could do more good paying down your loan.

Potentially an offset mortgage can save you thousands of pounds over the term of your loan. With for example a £100,000 mortgage and £40,000 savings, an offset deal would mean that you would only pay interest on £60,000 which is the difference between the two amounts.

For a mortgage over 25 years at 3.75 percent you could save around £16,000 or could clear the outstanding debt around six years earlier if you paid the full monthly payments each time.

With an offset mortgage you can still have access to your savings and are able to make cash withdrawals by simply reducing your amount of offset savings, however by doing this you will pay more interest on your debt.

There are various kinds offset deal, with the simplest keeping your mortgage and savings separate, with this type of produce your mortgage provider calculates the interest to be paid. Alternatively, current account mortgages are available which combine your savings, your mortgage and your current account balance.

For more information on an offset mortgage contact Deal Direct. Our skilled mortgage advisers offer independent and accurate advice and can help you work out if an offset deal is appropriate for your circumstances. Our 'whole of market' brokers will search through all lender deals on offer to find the most competitive rate for you.